What is the difference between union shop and agency shop

You must be logged in to post a comment. Username or Email Address. Remember Me. Facebook Twitter RSS. What are closed shop, union shop, and agency shop agreements? Closed Shop, Union Shop, and Agency Shop Agreements are Types of Agreements Between Employers and Unions Closed shop, union shop, and agency shop agreements all describe agreements between employers and organized labor unions.

Closed Shop Agreements are Illegal in the United States In a closed shop agreement, the employer agrees that he will only hire employees who are members of the union. This means you must pay dues, and the union represents you. Agency shops are the result of right-to-work laws and are union-protected workplaces.

If you live in a right-to-work state, which now comprises the majority of the U. The employee does not have to pay union dues, but the union still represents them.

The employee, though, may have to pay the union if he or she uses any of its services. In non-right-to-work states, employees still have to pay union dues, even if they disagree with or do not want to join the union. These are called "agency fees.

American Federation of State, County, and Municipal Employees, Council 31, that unions could not collect "Agency Fees" from public sector employees who were represented by a union, but who had not joined the union. This decision substantially changed all states to right-to-work states as far as public sector employment is concerned. If you are a Human Resources manager for a unionized company, make sure you build a good and positive relationship with the union itself.

Union employees have different rights than at-will employees. For instance, you can only terminate union employees for reasons set out by their contract. Layoffs must proceed according to the formula that was negotiated in the union contract, which can also dictate who gets raises and promotions. Each contract is different, so do not assume that you can jump into a new job without reviewing the contract for the specific union. Some companies even have multiple unions, so be careful.

A university, for example, because of the far-flung duties of its employees, may have to negotiate with six or more unions. Regardless of the union contract, you need to know whether you are dealing with a union shop or an agency shop. Your payroll system should deduct union dues automatically, but be prepared to answer questions from your employees regarding these deductions. In the process, you may even have to deal with a union representative who could have the right to accompany an employee to a disciplinary hearing.

Knowing the different types of union shops and the differences between them can ultimately prove beneficial to those looking to develop and strengthen employee-employer relations and gain a deeper understanding of Human Resources management. National Labor Relations Board. Society for Human Resources Management. Encyclopedia Brittanica. Although the collective agreement itself is not enforceable, many of the terms negotiated will relate to pay, conditions, holidays, pensions and so on.

Collective bargaining results in a collective bargaining agreement CBA , a legally binding agreement that lays out policies agreed to by management and labor. It is also referred to as the Wagner Act. It explicitly grants employees the right to collectively bargain and join trade unions. The NLRA requires the employer to bargain with the appointed representative of its employees.

Illegal subjects are those that cannot be legally bargained over by either party. They are subjects that would violate a law and cannot be entered into legally into a collective bargaining agreement even if both parties agree to do so. Permissive subjects of bargaining are those over which bargaining is neither compelled nor prohibited.